The Indonesian government is actively promoting the diversification of coconut-derived products, particularly at the micro, small, and medium enterprise (MSME) and industrial levels. This initiative is in line with the national strategy outlined in Presidential Regulation No. 18 of 2020, which focuses on downstreaming key agricultural commodities and aims to create a sustainable coconut sector in Indonesia. The effort involves strengthening the production of various coconut-derived products, including coconut oil, coconut flour, nata de coco, liquid smoke, virgin coconut oil (VCO), and oleochemicals.

Despite being the world's second-largest coconut and coconut product exporter by volume, Indonesia ranked fifth globally in terms of export value in 2022, with a total of USD 5.71 billion. This disparity highlights the need for Indonesia to shift toward higher-value-added coconut products, such as coconut oil. By promoting diversification and enhancing the value of coconut-derived products, Indonesia aims to further boost its coconut sector, aligning with its long-term national development goals.

WCD 2023, hosted in Gorontalo, Indonesia, from September 21 to 25, 2023, emphasized the country's commitment to sustainable coconut industries. The event underscored the importance of active engagement and collaborative efforts among various stakeholders to achieve a sustainable and prosperous coconut sector that benefits both the economy and the environment.

Source:
https://investor.id/business/341521/pemerintah-dorong-diversifikasi-olahan-kelapa